search icon
      blog search icon

      Grom Social Enterprises (GROM) On A Fresh Start - Stocks Telegraph

      By Wasim Omar

      Published on

      January 13, 2023

      7:37 AM UTC

      Last Updated on

      March 24, 2023

      6:02 AM UTC

      Grom Social Enterprises (GROM) On A Fresh Start - Stocks Telegraph

      Grom Social Enterprises Inc. (NASDAQ: GROM) has had a terrible year, as is blaringly obvious through its price trend. In just a single year, its stock price plummeted from over $36 to barely $1.32. Despite this, there has been a clear up-tick seen in the prior weeks.

      Grom Pulls in $5 million in Financing

      One reason which may explain the recent double-digit price rise seen with the stock of Grom Social EnterprisesInc. (GROM) may link to a successful public offering, which saw a cash injection of $5 million, into the company. It issued almost 1.8 million units for a price of $2.89 each. According to the management of the company, these funds will be allocated towards “general corporate purposes” which include marketing, R&D, strategic acquisitions, IP expansion, and other lucrative domains. The update significantly boosts Grom’s balance sheet, and enhances its ability to deliver, yet this will largely depend upon its ability to execute.

      Recent Corporate Update by GROM management

      Following its public offering, the management of GROM addressed its shareholders by providing a corporate update, highlighting the strengths of the business, along with forward-looking plans. The statement further discussed the breakthrough opportunities emerging through changing dynamics in the social media spheres. The Kids Online Safety Act had also been discussed in depth, and the implications it inherently holds for the future prospects of the stock. The management further emphasized that the company is ideally positioned to capitalize on the growing opportunities within the industry. It seemed evident that Grom is aiming to flip a new page, and start fresh with its recent financing complete.

      Conclusion

      Grom Social Enterprises has had a rough year, with a severe price plummet. However, with a recent financing bid, the management is looking to put the past behind, it and capture the opportunities it faces ahead. The question now remains, how well will management execute?

      More From Stocks telegraph